Category: Financial Terms

Dark Cloud Cover: Definition, Significance, and How to Trade It Key takeaways Dark Cloud Cover is a bearish candlestick reversal pattern that signals a potential shift from an uptrend to a downtrend. It consists of an up (bullish) candle followed by a down (bearish) candle that opens above the prior close but closes below the…

DAGMAR: Definition, Steps, and How to Use It What is DAGMAR? DAGMAR (Defining Advertising Goals for Measured Advertising Results) is a marketing model for setting clear advertising objectives and measuring campaign effectiveness. Introduced by Russell Colley in 1961 and later expanded, DAGMAR frames advertising as a sequence of communication tasks that move consumers from awareness…

Cyclical Unemployment What is cyclical unemployment? Cyclical unemployment is the portion of joblessness that rises and falls with the business cycle. It increases during economic downturns (recessions) when overall demand for goods and services falls, and declines during expansions when demand and labor needs grow. Cyclical unemployment is one component of total unemployment alongside structural,…

Cyclical Stocks: Definition, Risks, and Examples Cyclical stocks are shares of companies whose revenues and profits rise and fall with the broader economy. When the economy expands, demand for discretionary goods and services typically increases, boosting these companies’ sales and stock prices. During recessions, consumers cut back on nonessential spending, and cyclical stocks often suffer…

Cyclical Industries A cyclical industry is one whose revenues and profits rise and fall with the broader economy. Companies in these industries expand, hire, and invest during economic upswings and often cut back—reducing output, layoffs, and spending—during downturns. Industries that produce durable goods and consumer discretionary items are typically the most cyclical. Key takeaways Cyclical…

Customer-to-Customer (C2C) What is C2C? Customer-to-customer (C2C) is a business model in which individual consumers sell goods or services directly to other consumers, usually using a third‑party platform to list, discover, and complete transactions. Common implementations include online classified ads and auctions. How C2C works Sellers list items or services on a platform; buyers browse…

Customer Service: Definition, Best Practices, and Why It Matters What is customer service? Customer service is the support, assistance, and guidance a company provides to customers before, during, and after a purchase. It shapes customer perceptions, affects loyalty, and influences whether customers return or recommend the brand. How customer service works Customer service is usually…

Customer Relationship Management (CRM) Key takeaways CRM refers to the principles, practices, and technology an organization uses to manage interactions with customers. CRM systems centralize customer data to improve sales, marketing, service, and analytics. Major CRM trends include cloud delivery, automation, and increasing use of artificial intelligence (AI). CRM pricing varies widely by scope, number…

Customer: Definition and How to Study Their Behavior for Marketing Key takeaways * A customer is an individual or entity that purchases goods or services. * Understanding customer behavior helps businesses improve products, tailor marketing, and increase retention. * Exceptional customer service is a major competitive differentiator. What is a customer? A customer is any…

Custodian (Banking and Finance) A custodian is a financial institution or designated individual that holds and safeguards securities and other financial assets on behalf of clients. Custodians protect assets from theft, loss, or damage and perform related operational, accounting, and regulatory tasks that investors or advisors often prefer not to handle themselves. Key takeaways Custodians…

Custodial Account A custodial account is an account—at a bank, brokerage, or mutual fund company—opened and managed by an adult for the benefit of a minor. The adult (the custodian) controls transactions and investment decisions until the minor reaches the state-defined age of majority, at which point control transfers irrevocably to the beneficiary. Explore More…

What is a CUSIP number? A CUSIP (Committee on Uniform Security Identification Procedures) number is a nine-character alphanumeric code that uniquely identifies a financial security—such as a stock, bond, or other instrument—issued in the United States and Canada. CUSIPs standardize identification across trading, clearing, and record-keeping systems to reduce errors and speed settlement. How a…

Current yield What is current yield? Current yield measures the income an investment produces in relation to its current market price. For a bond, it equals the bond’s annual coupon payment divided by its current market price. For a dividend-paying stock, it equals the annual dividend divided by the current share price. Current yield reflects…

Current Ratio Definition The current ratio measures a company’s ability to meet short-term obligations. It compares all current assets to all current liabilities to show whether the business has enough resources to pay debts and bills due within one year. Formula Current Ratio = Current Assets / Current Liabilities Explore More Resources › Read more…

Current Liabilities: Definition, Examples, and How to Calculate Them What are current liabilities? Current liabilities are a company’s short-term financial obligations due within one year or within its normal operating cycle (whichever is longer). They are typically settled using current assets such as cash or accounts receivable. Common purposes include funding operations, paying suppliers, and…

Current Assets Current assets are resources a company expects to convert to cash, sell, or consume within one year. They appear at the top of the assets section on the balance sheet and indicate short-term liquidity—how readily a company can meet near-term obligations. Why current assets matter Show a company’s ability to pay short-term liabilities…

Current Account Deficit A current account deficit occurs when a country’s imports of goods, services, net income (interest and dividends), and transfers (such as foreign aid) exceed its exports. It is a core component of the balance of payments and reflects a nation’s net foreign transactions over a period. Key points A deficit means a…

Current account The current account records a country’s transactions with the rest of the world involving trade in goods and services, investment income, and unilateral transfers (like remittances and foreign aid). It is a key component of the balance of payments and signals whether a nation is a net lender or borrower internationally. Key takeaways…

Currency Swap: Definition, Uses, and Risks A currency swap is a financial agreement in which two parties exchange cash flows in different currencies for a set period. These arrangements typically involve exchanging principal amounts (either actually or notionally) and swapping interest payments denominated in each currency. Currency swaps help organizations manage currency and interest-rate exposure…

What is a currency peg? A currency peg is a government or central bank policy that fixes a country’s exchange rate to a foreign currency or to a basket of currencies. By anchoring the domestic currency to a more stable or widely used currency, a peg reduces exchange-rate uncertainty, encourages cross-border trade and investment, and…

Currency Exchange: Definition, How It Works, and Where to Find It What is a currency exchange? A currency exchange is a business that lets customers swap one national currency for another. These services can be provided at teller counters (banks, airports, hotels), specialized kiosks (bureau de change / casa de cambio), online platforms, or via…

Currency Carry Trade Overview A currency carry trade is a foreign-exchange strategy that profits from interest-rate differentials between two currencies. Traders borrow in a low-yielding currency (the funding currency) and invest in a higher-yielding currency (the asset currency), collecting the spread. These trades are commonly leveraged to amplify returns, which also increases potential losses. How…

Understanding Currency: Types, Functions, and Its Role in Money Currency is the tangible form of money—paper bills and coins—used as a medium of exchange for goods, services, savings, and debt repayment. Over time, currency evolved from barter and commodity money (like gold or shells) to coins and paper notes, and more recently to digital forms…

Master the Cup and Handle Pattern: Trading Strategies & Targets The cup and handle is a bullish continuation pattern that looks like a rounded “U” (the cup) followed by a small downward drift or consolidation (the handle). Traders use it to identify potential breakout buys when price reclaims prior resistance. What the pattern signals Indicates…

Cum Laude Key takeaways Cum laude (Latin: “with honor” or “with distinction”) is an academic honor awarded for strong undergraduate performance. Higher distinctions are magna cum laude (“with great honor”) and summa cum laude (“with highest honor”). Criteria vary by institution and may be based on GPA, class rank, faculty review, or a combination. Honors…

Cum Dividend: Meaning, How It Works, and Examples What “cum dividend” means Cum dividend (Latin: “with dividend”) describes a stock that is being traded with the right to receive the next declared dividend. If you buy a share while it is cum dividend, you will receive the upcoming payout; if you buy after the ex-dividend…

Cryptocurrency Explained: Pros and Cons for Investment Cryptocurrency is a class of digital assets secured by cryptography and recorded on distributed ledgers known as blockchains. They enable peer-to-peer value transfer and programmable financial services without relying on traditional central intermediaries. This article explains how cryptocurrencies work, the main types, how to buy and hold them,…

Understanding Crypto Tokens: How They Work and Why They Matter Crypto tokens are digital representations of assets, rights, or utility that are created on top of an existing blockchain. Unlike cryptocurrencies (coins), which are the native asset of a blockchain (for example, Bitcoin on the Bitcoin blockchain), tokens rely on another blockchain’s infrastructure—most commonly Ethereum—and…

Crude Oil: Definition, Market Role, and How to Invest Key takeaways Crude oil is a naturally occurring, nonrenewable liquid formed from ancient organic matter and refined into fuels and industrial feedstocks. Its price is driven by supply and demand, geopolitics, and technological change, making it a highly influential and volatile global commodity. Investors can gain…

Crowding Out Effect Key takeaways * The crowding out effect describes how increased government spending and borrowing can reduce private-sector investment. * It typically occurs when government demand for loanable funds pushes interest rates higher, making private borrowing more expensive. * Crowding out is most likely when the economy is near full capacity; during recessions,…

Crowdfunding: What It Is, How It Works, and Key Considerations What is crowdfunding? Crowdfunding raises capital by pooling small contributions from many people, typically via online platforms and social media. It can fund creative projects, product launches, medical or disaster relief, subscriptions for creators, and equity stakes in startups. The model became widely used after…

Cross-Selling Cross-selling is the practice of offering customers additional products or services that complement what they’ve already purchased. When executed well, it increases revenue, strengthens customer relationships, and helps customers meet more of their needs. When done poorly, it can appear pushy, erode trust, and damage reputation. Key takeaways Cross-selling targets existing customers with related…

Cross Elasticity of Demand Cross elasticity of demand (also called cross-price elasticity) measures how the quantity demanded of one good (X) responds to a change in the price of another good (Y). It helps identify whether goods are substitutes, complements, or unrelated and by how much consumers switch between them. Key takeaways Positive cross elasticity:…

Cross-Culture: Definition, Importance, and Practical Guidance Key takeaways * Cross culture refers to recognizing and bridging differences among people from different national, regional, ethnic, or social backgrounds—especially in business contexts. * Globalization makes cross-cultural competence essential for companies expanding into new markets or working with international partners. * Training and deliberate practices (language learning, etiquette,…

What Is Creditworthiness? Creditworthiness is a lender’s assessment of how likely you are to repay borrowed money. It combines objective data—your credit report and credit score—with lenders’ evaluations of income, assets, and existing liabilities. Strong creditworthiness improves your chances of loan approval and earns better interest rates and terms. Key Factors That Determine Creditworthiness Credit…